The recession has taken its toll on businesses large and small. Many businesses have had to make pay cuts or make staff redundant as costs were eating into profit. To ensure your business is sustainable, there are some key things you can do to reduce your costs on overheads, marketing and equipment. Here are ten ways you can minimise your outgoings in order to maximise profit.
If you are self-employed and are working on your own, working from home is most likely the best option. If you’d like to distinguish your home life from your work life, consider co-working. Co-working allows you to rent a desk in an office so you can experience a work environment but not feel as isolated if you were to work at home. Co-working will also free you of any distractions but is much cheaper than renting out office space.
If you have a team of people and need office space, opt for industrial as opposed to commercial space as the rent is cheaper. If possible, allow staff to work from home as this will save on the amount of space needed. Stagger shift times and allow flexible working patterns so that workers can hot desk, this will reduce the amount of office space needed.
In addition, if you are expanding at a rapid rate and are fortunate enough to have high ceilings, you could consider installing a mezzanine floor. Mezzanine floors are intermediate flooring which adds another level to a building.
Consider hiring a college graduate as an intern, as many are looking for a CV opportunity and are willing to work for free. Graduates are brimming with ideas and are keen to utilise them. If you’re business fluctuates throughout the year, employ freelancers at busy periods or temporary staff to work during those periods. Cross train staff so that if someone goes on maternity leave or are sick, you will have competent staff to cover without having to pay for additional staff.
If you’re business needs computers, use laptops instead of desktop PC’s as they use 90% less energy. Energy saving light bulbs are a quick and easy change to make but will have a major impact when it comes to your energy bill.
Pay Bills Early
If you pay your suppliers early you may be offered an early payment discount. In some instances you can save up to 25%.
Traditional marketing can become expensive but when promoting your business, make the most of marketing for free online. Create a business blog and write about industry related topics. Be considered as an authority in your area by providing up to date and relevant information. Get active with social media and create a LinkedIn profile as well as a Facebook business page and twitter account.
Word of Mouth
Think about giving a talk or presentation at a local event such as a coffee morning, fete or exhibition. Give out free samples or do a demonstration depending on what your business is.
Include promotional material such as money off vouchers into mailings such as invoices rather than paying for additional posting.
Create a video demonstrating your product or speaking about your service. Make the video quirky and unique to help it go viral.
Buying refillable printer cartridges can save around 50% as opposed to buying new cartridges. Negotiate with your supplier if you order a large amount of supplies each month to get a bulk discount. Only buy the things you really need.
To kit out an office buy second hand desks and chairs from companies that are going into administration. If you need warehouse space, buy previously used pallet racking to store items in. You can buy second hand pallet racking at a fraction of new warehouse racking and it is also more eco-friendly.
By Boris Dzhingarov is passionate about writing on different business topics. Follow him on Google+.